Dependent demand determination for demand forecasting

Challenge

The aim of demand forecasting is to forecast higher quality components demand overnight via an integrated order and components forecast:

• Creating planned orders taking into account targets (models and code parts)  and constraints (product description, production order) in the delivery view.
• Determination of weights for each planned order for targeted achievement of targets (consumption quotas) and consideration of restrictions in the delivery and production view.

Solution

As this is a problem with a large number of variables and constraints, the Column Generation optimization procedure is implemented as a solution.

Benefit

• Orders and components demands are currently determined overnight within a week. This means a considerable process shortening
• Suppliers get 2 weeks more lead time
• Integrated, cross-department processing taking into account the specifications and restrictions of all parties involved
• Program changes and reallocations are completely preventively safeguarded